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China slows down coal-to-gas plant development

China's plans to boost the coal-to-gas industry may be developed at a much slower pace than expected, due to technical problems and rising greenhouse gas emission concerns. More than 45 coal-to-gas plants have been proposed for construction but the first plant to start operations in Inner Mongolia in late 2013 has experienced successive technical problems (explosion killing two workers in January 2014 and serious corrosion problem requiring to shut down the plant) and led to financial losses for its operator Datang. Datang even decided to withdraw from coal-to-gas projects. In addition, this industry is increasingly opposed in China due to water and air pollution problems. China's commitment to cap greenhouse gas emissions by 2030 and to have 20% of non-fossil fuels in its energy mix may also limit coal-to-gas developments. These syngas plants are also losing government support: initially included in a preliminary draft on priority industries in western China, they were excluded in the final document. The Chinese government would also be considering freezing approvals for most of the projects over the 2015-2020 five-year plan.